Correlation Between Agricultural Bank and De Rucci
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By analyzing existing cross correlation between Agricultural Bank of and De Rucci Healthy, you can compare the effects of market volatilities on Agricultural Bank and De Rucci and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Agricultural Bank with a short position of De Rucci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and De Rucci.
Diversification Opportunities for Agricultural Bank and De Rucci
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agricultural and 001323 is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and De Rucci Healthy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on De Rucci Healthy and Agricultural Bank is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Agricultural Bank of are associated (or correlated) with De Rucci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of De Rucci Healthy has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and De Rucci go up and down completely randomly.
Pair Corralation between Agricultural Bank and De Rucci
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.42 times more return on investment than De Rucci. However, Agricultural Bank of is 2.36 times less risky than De Rucci. It trades about 0.33 of its potential returns per unit of risk. De Rucci Healthy is currently generating about -0.09 per unit of risk. If you would invest 473.00 in Agricultural Bank of on September 24, 2024 and sell it today you would earn a total of 31.00 from holding Agricultural Bank of or generate 6.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Agricultural Bank of vs. De Rucci Healthy
Performance |
Timeline |
Agricultural Bank |
De Rucci Healthy |
Agricultural Bank and De Rucci Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Agricultural Bank and De Rucci
The main advantage of trading using opposite Agricultural Bank and De Rucci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, De Rucci can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in De Rucci will offset losses from the drop in De Rucci's long position.Agricultural Bank vs. Guocheng Mining Co | Agricultural Bank vs. Sino Platinum Metals Co | Agricultural Bank vs. Guangdong Jinma Entertainment | Agricultural Bank vs. Shenyang Huitian Thermal |
De Rucci vs. Agricultural Bank of | De Rucci vs. Industrial and Commercial | De Rucci vs. Bank of China | De Rucci vs. China Construction Bank |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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